Delta to cancel Mesa subsidiary contract - East Valley Tribune: Business

Delta to cancel Mesa subsidiary contract

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Posted: Tuesday, August 5, 2008 11:32 pm | Updated: 8:37 pm, Fri Oct 7, 2011.

ATLANTA - Mesa Air Group says Delta Air Lines is again trying to terminate a regional flying contract with Mesa subsidiary Freedom Airlines.

Phoenix-based Mesa said in a statement Tuesday that on Friday it received notification from Delta that the carrier is ending Freedom’s CRJ-900 Delta Connection agreement, once again alleging Freedom failed to maintain specified operational performance, as outlined in the contract.

“Mesa strongly disputes these allegations and intends to vigorously defend its contractual rights,” the company said.

Mesa added that it believes the cancellation plan was driven by Delta’s intention to reduce capacity and its “inability to reduce aircraft at its wholly owned Comair subsidiary without incurring significant ongoing expense.”

Delta stood by its decision.

“It’s more important than ever before that Delta and its Delta Connection partners meet operational and customer service levels,” Delta spokeswoman Betsy Talton said.

Freedom operates seven 76-seat CRJ-900 regional jets for Delta Connection, with a further seven aircraft scheduled to enter service by May 2009. The company subleases the aircraft from Delta for $1 per month per aircraft. Mesa said the aircraft will be returned to Delta in connection with the termination with no further financial obligation to Mesa.

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